RedGo Inks First Lease at Three Tun Center

FRASER, PA — RedGo Developments’ plans for the 24-acre Three Tun Business Center it acquired in mid-2006 have been given a jump start with a full-building, seven-year lease by Clyde Bergemann Delta/Ducon. The global pollution controls conglomerate is moving into the 13,000-sf first floor of the 17,800-sf office building and will occupy the full building within a year.

This is one of two existing buildings in the park at the time of West Chester-based RedGo’s acquisition of the center at 33 Sproul Rd. from Whitford Worldwide for $4.4 million, as GlobeSt.com previously reported. A team from the Wayne office of CB Richard Ellis represented RedGo and the tenant in the negotiations. Team members are associate Mitch Reading and senior associate Paul Touhey, assisted by SVP Steve Italiano.

Neither CBRE nor RedGo would disclose the value of the lease. However, on condition of anonymity, an area industrial broker confirms to GlobeSt.com that the asking rate for this renovated office space is in the range of $16 per sf. The building was built 25 years ago, and RedGo’s repositioning took it down to the shell for renovations.

Clyde Bergemann is headquartered in Wesel, Germany and Glasgow, Scotland. It recently acquired Delta/Ducon, and that staff is relocating from Malvern. According to Reading, the company plans to nearly double its staff here within five years. “The signing of this office lease laid the cornerstone and has essentially kicked off the entire development,” he says.

Reading tells GlobeSt.com that site work has begun on a total renovation of the existing 41,000-sf flex building and for the construction of two new office buildings aggregating 35,000 sf. “The flex renovation is expected to be completed in June 2008,” he says, “and we’re in the process of preleasing flex space beginning at 4,000 sf. There is no signed lease yet, but we do have an oral commitment,” he adds. The asking rent rate is $7 per sf, triple net.

Completion of the two new single-story office buildings of 15,000 sf and 20,000 sf, respectively, will depend on leasing. But Reading says the developer is moving ahead on spec and expects to deliver by fourth quarter 2008. The asking office rate is $20 per sf, plus electric, he says.

A second phase of new development at the park is also on the drawing boards and Reading expects ground will break in 2009. That calls for two flex buildings, one aggregating 60,000 sf, and the other, 52,000 sf. “This is the newest high-end flex and office development along the 202 corridor and it fills a void in the market,” he says.